Spousal Support and Tax Implications

There are basic requirements for support to qualify as alimony under the Tax Reform Act of 1986. Support that is considered alimony is recognized as income therefore must be taken into account when filing federal income tax. Typically, the spouse who pays support may deduct the payments as an expense. Federal legislation now requires most companies that provide employer-sponsored group health plans to give divorced spouses the same group rate for up to three years.